Still-lower prices appear likely, since yesterday’s plunge not only exceeded the clear ‘D’ target shown, it has also impulsed beneath Friday’s low in after-hours trading. Add in the fact that the obligatory running of the stops following the breach of the low is not producing much of a rally, and one could infer that the underlying weakness is profound. Pivoteers are encouraged to short — using a microtight stop-loss — the ‘d’ target of any rally that plays out well on the 5-minute chart; or to short a ‘p’ using camouflage. _______ UPDATE (11:30 a.m. EDT): An hour into the session, in the space of two 30-minute bars, the futures have rallied sharply, impelled by who-knows-what news. The so-far high is 1314.00, but it’ll take 1319.50 — equivalent to a Dow rally of about 160 points from this morning’s lows — to turn the hourly chart impulsively bullish. To trade this already overextended move via camouflage, you’ll need to zoom all the way down to the two-minute chart — the first place where single-bar highs and lows are available — initiating via a timed buy-stop.
